Reading Cooperative Bank and Wakefield Cooperative Bank announced plans to enter into a partnership agreement in an effort to create a stronger, more resilient financial institution.
The newly formed organization will retain the name Reading Cooperative Bank and will be led by Reading Cooperative Bank President and CEO Julieann Thurlow. Wakefield Cooperative Bank President and CEO Jeffrey Worth will take on the role of president for the combined entity. A press release announcing the agreement included a joint statement by the two bank executives.
“This partnership combines two financially sound organizations that have long been dedicated to their customers and the communities they serve,” Thurlow and Worth said. “Together, we will create a bank with greater size and scale, allowing us to provide even more relevant and innovative services for the future.”
Dodd Frank Update inquired about the companies’ decision to use the term “partnership” to describe the agreement in lieu of “merger” or “acquisition.” Thurlow provided the following explanation:
“Both banks are mutual cooperatives, so there is no price paid for the transaction. The boards of both banks discussed and negotiated the combination of the two mutuals. All offices, the majority of employees and all independent board members are being retained to ensure that the combined organization continues to meet the needs of all of its markets.”
The combined institution will have approximately $1.2 billion in assets and 14 full-service locations across 11 communities, according to the release.
“We want to assure customers that no branches will be closed as part of this transaction,” Thurlow said in the release. “This partnership provides convenience and access connecting our original Reading branches in Middlesex County to our newer locations in Lynn and Nahant.”
The partnership has been approved by both banks’ boards of directors and is pending approval by bank depositors, the Massachusetts Division of Banks and the Federal Reserve.
Both organizations plan to continue operating as mutual cooperative banks once the partnership agreement is finalized, which is expected to happen in the second quarter of 2025.